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Balance Sheet Information
9 Months Ended
Sep. 30, 2022
Balance Sheet Related Disclosures [Abstract]  
Balance Sheet Information Balance Sheet Information
Property and equipment, net
Property and equipment, net consisted of the following:
As of September 30,As of December 31,
20222021
(in thousands)
Computer and networking equipment$215,102 $207,575 
Leasehold improvements7,970 4,631 
Furniture and fixtures1,599 1,606 
Office equipment1,214 654 
Internal-use software60,235 40,345 
Property and equipment, gross$286,120 $254,811 
Accumulated depreciation and amortization(107,040)(87,850)
Property and equipment, net$179,080 $166,961 
Depreciation on property and equipment for the three months ended September 30, 2022 and 2021 was approximately $10.7 million and $7.4 million, respectively. Included in these amounts was amortization expense for capitalized internal-use software costs of approximately $2.4 million and $1.3 million for the three months ended September 30, 2022 and 2021, respectively.
Depreciation on property and equipment for the nine months ended September 30, 2022 and 2021 was approximately $31.2 million and $20.7 million, respectively. Included in these amounts was amortization expense for capitalized internal-use software costs of approximately $6.0 million and $3.2 million for the nine months ended September 30, 2022 and 2021, respectively.
The Company also recorded out-of-period adjustments in the quarter ended September 30, 2021 to correct and capitalize certain internal-use software costs that were previously expensed of $5.1 million, of which $2.4 million and $2.7 million related to the quarterly periods ended March 31, 2021 and June 30, 2021, respectively.
As of September 30, 2022 and December 31, 2021, the unamortized balance of capitalized internal-use software costs on the Company's Condensed Consolidated Balance Sheets was approximately $41.8 million and $27.9 million, respectively.
The Company leases certain networking equipment from various third parties through equipment finance leases. The Company's networking equipment assets as of September 30, 2022 and December 31, 2021, included a total of $87.2 million and $67.8 million acquired under finance lease agreements, respectively. These leases are capitalized in property and
equipment, and the related amortization of assets under finance leases is included in depreciation and amortization expense. The accumulated depreciation of the associated networking equipment assets under finance leases totaled $24.7 million and $14.4 million as of September 30, 2022 and December 31, 2021, respectively.
Other assets
Other assets consisted of the following:
As of September 30,As of December 31,
20222021
(in thousands)
Deferred contract costs, net$35,524 $23,830 
Advance payment for purchase of property and equipment30,348 — 
Other assets7,386 5,638 
Total other assets$73,258 $29,468 
Accrued expenses
Accrued expenses consisted of the following:
As of September 30,As of December 31,
20222021
(in thousands)
Accrued compensation and related benefits$28,520 $13,543 
Accrued colocation and bandwidth costs9,684 10,205 
Sales and use tax liabilities9,414 8,070 
Other accrued liabilities6,568 4,294 
Total accrued expenses$54,186 $36,112 
Other current liabilities
Other current liabilities consisted of the following:
As of September 30,As of December 31,
20222021
(in thousands)
Deferred revenue, current$22,727 $26,421 
Accrued computer and networking equipment5,840 18,081 
Holdback payable4,013 — 
Other current liabilities842 605 
Total other current liabilities$33,422 $45,107